Yes, one can truly achieve financial freedom in life. Finance/money is indeed a very complicated factor in determining one’s quality of life and happiness factor.
Having in one’s kitty, all the money in the world will lead to a stress-free feeling of can-do, become anything in this world. And this feels an excellent factor is the main reason for all the money problems in this world and for solving the same requires lifelong self-discipline and control over one’s outflow of earnings and debt instances.
To reach all one’s goals easily, there are three essential steps that one must comply with reaching true financial freedom and fulfilment in life.
ESSENTIAL STEPS TO FINANCIAL FREEDOM
Below mentioned are three critical steps to true financial freedom and fulfilment:
Once a person reaches a certain age, the knowledge of things concerning money becomes apparent. Like after schooling, when a child starts using public transport and goes to college for finishing the degree course.
Becoming aware of the importance and role of money in one’s daily life is the stage when we become questioning our belief system. We become aware of what we need, along with how to attain this need in terms of earning money.
At this time, we might think that studying and gaining a degree is the only way that is legally available to us for making money. Our needs, dreams, desire tend to start developing at this stage, with more knowledge and awareness.
As part of awareness is the foremost step of making an emergency fund.
BUILDING AN EMERGENCY FUND: The first and the foremost task after having an awareness of the vagaries of money is that of making and building up an emergency fund. It is necessary as a financial cushion at the time of some medical or other crisis. Accumulating an amount of savings towards the emergency fund will not only ensure nil need to borrow from third parties but will also develop a healthy habit of saving for the long term. An emergency corpus is a must for everyone.
2. TAKING CONTROL
It is the second aspect of becoming truly financially independent. Taking control in a literal sense does not mean controlling people in our everyday lives. Instead, it means taking control of one’s thoughts in terms of earning, spending and saving habits.
Taking control of one’s thoughts about money and having much financial discipline is highly rewarding. Making good note of daily/weekly/monthly expenses along with the creation of monthly budgets will ensure that none of the precious money is wasted for frivolous things.
Additionally, the habit of making a shopping list every time one goes off for shopping also assists in tracking the money outflow.
As part of taking control over one’s finances would include:
SAY NO TO CREDIT CARD: One of the best means of taking control is using the salary or other inflow of money into a channel of savings and its eventual investments in any mutual funds or any instrument with tax benefits.
And by this, we all need self-control on not availing the benefits of a credit card and fall in a debt trap. A credit card encourages consumerism and unwanted shopping. If a person has a direction of what he/she wants and purchasing the same out of one’s real earnings, the requirement of a credit card can be done away quickly.
But, as we can find that most of the youngsters today get attracted to this plastic money, with a feeling that this one card is the solution for most of their problems. From the very beginning, any person should have the right direction of no debt in their lives in the form of any credit cards.
And also should know its expensive rate of interest and other disadvantages.
MAKE INVESTMENTS: Another aspect of taking control is the handling of one’s savings towards investment. This process entails the learning of more than the basics of investing. It includes how, when as well as the aspects of taxation and other kinds of benefits.
Making investments of one’s savings, after the creation of an emergency fund will ensure the aspect of compounding is brought about in personal funds. It magnifies the amount of savings and brings forth higher cash inflows.
PASSIVE SOURCES OF INCOME: Another element of controlling is finding other sources of passive income to add to one’s earnings. Taking online tutorials, giving on rent your space, babysitting, and many other easy tasks can lead to many sources of income. This passive source of income is very beneficial towards one’s college fees for higher studies or even to tackle any medical emergency affecting one’s studies.
3. SELF FULFILMENT GOALS
It is the last stage of true financial independence in which a person with fulfilling the goals as mentioned above reaches a point of gaining the ability to satisfying one’s primary goal in life.
This goal can be anything from building a dream house or a holiday destination or even starting a venture or gardening on a large scale. The very essence and idea behind undertaking so much financial prudence are to fulfil one’s dream of life and attain happiness and contentment. This stage comes at the time of one’s retirement or even before that.
And many people use all of the accumulated funds of life-long years to fulfil their dream on this earth. Some of them might even take early retirement and go off to globe roaming as they have due to financial self-control achieved all their financial goals.
FUNDING OF MONEY IS GOOD
The most horrendous situation of finances can be solved through online lenders lending a helping hand to those having poor or very financial conditions or credit scores. They tend to offer personal loans for CCJ with no guarantor policy.
Even after the judgment of the court as a county court judgment and considering the improvement in the credit score, this type of assistance by the loan providers is immensely helpful.
In summation, making use of third party funding, along with fulfilling each step towards financial independence is rewarding and self-fulfilling concerning one’s financial goals.